Employment data revision washes $60B from crypto market cap
The crypto market lost $60 billion in market capitalization during the two hours following revised employment data, revealing a significantly weaker US labor market than previously reported.
The Bureau of Labor Statistics (BLS) announced at 10 AM ET on Sept. 9 that preliminary benchmark revisions showed total nonfarm employment was overstated by 911,000 jobs, representing a 0.6% downward revision from March 2024 to March 2025.
Bitcoin dropped 1.8% from $112,788.75 to $110,793.69 between 10 A.M. and 11 P.M. ET. Ethereum declined 1.6% from $4,346.56 to $4,277.17 during the same period.
Major altcoins posted steeper losses, with Dogecoin falling 4.1% from $0.2469 to $0.2367 and Solana dropping 3% from $218.04 to $211.69.
Other notable declines included Cardano’s 3.5% fall from $0.8839 to $0.8525, XRP’s 2.5% drop from $3.01 to $2.93, and BNB’s 1% decrease from $879.89 to $871.38.
Despite partial recoveries from daily lows, all assets remained below their pre-announcement prices.
Significant revision
Treasury Secretary Scott Bessent characterized the revision as confirmation that economic conditions were worse than reported, stating the data brought total job overstatements to 1.5 million when combined with previous downward revisions of 577,000.
Bessent argued that the Fed maintained a restrictive monetary policy based on inflated employment figures. The market reaction reflected investor concerns that the Federal Reserve operated with incomplete data when setting interest rate policy throughout 2024.
The substantial employment overcount suggested the economy required more accommodative monetary conditions earlier than policymakers recognized.
The annual benchmark revision process compares Current Employment Statistics estimates against comprehensive employment counts from the Quarterly Census of Employment and Wages, which derives data from state unemployment insurance tax records filed by nearly all employers.
The 0.6% revision magnitude exceeds the 10-year absolute average of 0.2%, highlighting the scale of the employment overcount. The BLS attributed the discrepancy to businesses reporting lower employment to unemployment insurance records than to monthly employment surveys.
The correction indicated traders view the current landscape as uncertain, although the revised numbers raise the odds of a rate cut in September.
The post Employment data revision washes $60B from crypto market cap appeared first on CryptoSlate.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The Bank of England keeps interest rates unchanged as expected and slows the pace of balance sheet reduction.
The Bank of England reiterated its cautious stance on future interest rate cuts, emphasizing that inflationary pressures remain significant. The government's autumn budget may become the decisive factor for the interest rate cut path for the remainder of the year.
Highlights of the Federal Reserve FOMC Statement and Powell's Press Conference
This FOMC decision and Powell’s speech sent a clear signal: the Federal Reserve is resuming rate cuts, but at a more cautious pace, with the core focus on balancing inflation stickiness and the risk of a slowdown in employment.
Initial Jobless Claims Data Stages a "Magic Show": From the Highest in Nearly Four Years to the Largest Drop in Nearly Four Years in an Instant!
Just a week ago, initial jobless claims had surged to their highest level in nearly four years, sparking market concerns over a spike in layoffs. However, the latest data released today presents a dramatic turnaround.
Tokenized Deposits Used to Optimize Cross-Border Settlements
Trending news
MoreCrypto prices
More
